BILL NUMBER: AB 2054	CHAPTERED  09/26/00

	CHAPTER   665
	FILED WITH SECRETARY OF STATE   SEPTEMBER 26, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 24, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 23, 2000
	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN SENATE   JUNE 29, 2000
	AMENDED IN ASSEMBLY   MAY 26, 2000
	AMENDED IN ASSEMBLY   MAY 2, 2000
	AMENDED IN ASSEMBLY   APRIL 24, 2000

INTRODUCED BY   Assembly Member Torlakson

                        FEBRUARY 22, 2000

   An act to add Sections 65891.3, 65891.5, 65891.11, and 65891.12 to
the Government Code, and to add Sections 50542.1, 50543, and 50546
to the Health and Safety Code,  relating to balancing jobs and
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2054, Torlakson.  Balance of jobs and housing.
   Existing law requires the Department of Housing and Community
Development to prepare a guidebook for use by governmental agencies
in planning and developing a housing supply to meet the need created
by employment growth.  Existing law requires a city or county to
include a housing element in its general plan, and, for that purpose,
prescribes criteria for determining the city or county share of the
regional housing needs, including a requirement that the distribution
of regional housing needs take into account, among other things,
market demand for housing and employment opportunities.
   This bill would revise the legislative findings and declarations
with regard to the need for the Inter-Regional Partnership (IRP)
State Pilot Project to Improve the Balance of Jobs and Housing, and
would revise provisions related to the research and development phase
of the IRP State Pilot Project, as proposed to be established by  AB
2864.
    The bill would create a special fund in the State Treasury, the
Jobs-Housing Balance Improvement Account, for the purposes of making
grants to local agencies, cities, counties, and cities and counties
and transferring funds to the Rental Housing Construction Fund, and
for related administrative expenses of the department pursuant to the
Jobs-Housing Balance Improvement Program, as that program is
proposed to be created by AB 2864, and would make other changes
relating to administration of that program.
   The bill would become operative only if AB 2864 is enacted and
becomes effective on or before January 1, 2001.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 65891.3 is added to the Government Code, to
read:
   65891.3.  The Legislature finds and declares all of the following:

   (a) California will experience significant population growth in
the coming decades.  In the San Francisco Bay Area, one million new
residents are forecast by the year 2020.  An equal number of new jobs
are expected during the same time period.  However, less than
500,000 new housing units are expected to be built in an already
costly and competitive housing market.
   (b) Under the current land use and policy framework, central
valley communities expect to double or triple in size, but most of
them will not attract equivalent numbers of new jobs.  Instead,
thousands of central valley residents are expected to commute far
into the bay area, often driving two hours or more each way.  The
challenges to transportation, air quality, and social quality of life
are enormous.  Projections estimate the current number of less than
100,000 daily Altamont Pass commuters will more than double to
250,000 by the year 2020.
   (c) These growth-related issues cut across county and regional
boundaries.  The Inter-Regional Partnership is intended to provide a
forum for neighboring jurisdictions governed by different regional
councils of government to deal collaboratively with land use,
transportation, and air quality issues that affect a five county
region, while also complementing existing collaborative regional
organizations, including, but not limited to, the Bay Area Alliance
for Sustainable Development, the Bay Area Council, the Silicon Valley
Manufacturing Group, the Great Valley Center, and others, in order
to support optimal intra-regional accountability for growth.
   (d) The IRP State Pilot Project will stand as an important example
for other regions in the state in dealing with multijurisdictional
problem solving and addressing land use planning across metropolitan
borders.
   (e) The need for communication and cooperation among these
jurisdictions is underscored by the fact that Alameda County recently
sued the City of Tracy in San Joaquin County concerning the
environmental impacts of a planned housing development on the western
edge of the county where a majority of residents would be assumed to
commute into the San Francisco Bay Area through Alameda County.
   (f) These interjurisdictional planning issues are not unique to
the IRP's five county area; several other expanding metropolitan
areas in California are beginning to experience similar problems.
However, the geographic imbalance in housing and job growth in the
IRP area is among the country's most extreme examples, and, driven by
continued employment growth in the Silicon Valley, is predicted to
worsen significantly in the coming years.
   (g) The housing market in the Silicon Valley is now the most
expensive in the nation.  Land being developed for housing in the San
Joaquin Valley is some of the highest quality agricultural land in
the world.
   (h) The IRP area is the best place in the state, and probably one
of the best in the country, to implement a pilot program designed to
mitigate the myriad of problems associated with unbalanced and
uncoordinated growth.
   (i) By implementing this pilot program, the state will play an
important role in creating a more sustainable future pattern of land
use in the IRP area.
   (j) Active investment of state resources to balance job growth and
housing growth will reduce the need for costly transportation
infrastructure investments in the future.
   (k) The current path of land development in the five county area
will have very costly transportation and environmental impacts if
efforts are not made soon to link job growth to housing production.

  SEC. 2.  Section 65891.5 is added to the Government Code, to read:

   65891.5.  (a) During the first year after the date that funding is
received, the IRP shall complete all the necessary research,
outreach, and negotiation to allow the successful establishment of
jobs-housing opportunity zones throughout the five IRP counties.  The
IRP shall collaborate with local governments and existing regional
and subregional organizations committed to improving inter-regional
jobs-housing balance.  During this phase, a series of outreach
meetings shall be held with local jurisdictions and the public to
review and comment on the data and make recommendations for locations
of jobs-housing opportunity zones.  Public input and participation
shall be encouraged throughout phase one of the IRP pilot project.
Local jurisdictions wishing to participate in the pilot project shall
enter into agreements with the IRP to pursue the regional goals and
objectives of opportunity zones within their jurisdictions.
   (b) The first phase shall provide all of the following:
   (1) An integrated Geographic Information System (GIS) designed,
where feasible, to be compatible with existing regional GIS systems.
The IRP's GIS system shall enable easy comparison of data on land
use and transportation trends and alternative scenarios across the
five county area.  The GIS mapping shall focus on obtaining existing
data from a variety of sources, including, but not limited to, the
Bay Area Regional Livability Footprint Project that integrates land
use with transportation, housing, job, economic, social equity, and
environmental overlays, and integrating them into a single system to
allow accurate analysis and scenario work on an interregional scale.
The Legislature finds and declares that the IRP's GIS system will be
a crucial tool for use in determining the location of proposed
jobs-housing opportunity zones.
   (2) General types of data to be assembled in the GIS system shall
include:
   (A) Demographic data, including population and employment by
census tract.
   (B) Projected growth data consisting of information on where
growth, including jobs generation and new housing location, is
predicted to occur over a 20-year period.
   (C) Transportation information such as traffic capacity and usage,
transit access and usage, and journey- to-work data.
   (D) Land use information, including general plan layers and zoning
designations.  It is the intent of the Legislature that to reduce
costs and setup time, the IRP's GIS undertaking shall not include
parcel-level data.
   (E) Basic environmental data, including floodplains, slopes,
contamination, prime soils, open space, and important natural
resources both inside and outside of urbanized areas.
   (3) A refined description of the incentive program for application
to the jobs-housing opportunity zones within the IRP counties.  This
list shall include thorough descriptions of fiscal and nonfiscal
policy and regulatory incentives.  A variety of state departments
shall be involved in determining what incentives might be made
available, including, but not limited to, the Office of Planning and
Research, the Department of Housing and Community Development, the
California Housing Finance Agency, the Department of Transportation,
and the Department of Conservation.
   (4) Recommendations for establishing five to 10 official
Inter-Regional Partnership Jobs-Housing Opportunity Zones located
throughout the five county area.  Using the GIS system and conferring
with interested regional organizations and with local jurisdictions,
the IRP shall propose a series of jobs-housing opportunity zones.
Each zone shall have specific goals and a description of the type of
action desired to attain these goals, including recommended state
sponsored incentives intended to encourage the desired results.  The
types of incentives requested may vary by zone location and type.
Zones located near, or with good transit access to, existing major
employment centers may receive incentives designed to promote
reasonably priced housing development.  Zones located far from
existing employment centers, but near, or with good transit access
to, significant work force housing supply, may receive incentives
designed to promote employment development.  Adoption of land use
policies that protect agriculture and natural resources and promote
compact, higher density, mixed use, transit-oriented development may
be required as selection criteria for jobs-housing opportunity zones.

  SEC. 3.  Section 65891.11 is added to the Government Code, to read:

   65891.11.  The department may administer the programs set forth in
this article, and the funds transferred by Item 2240-112-0001 of the
Budget Act of 2000 to the Housing Rehabilitation Loan Fund
established by Section 50661 of the Health and Safety Code, pursuant
to guidelines that shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Division 3 of Title 2.

  SEC. 4.  Section 65891.12 is added to the Government Code, to read:

   65891.12.  This article shall become inoperative on July 31, 2004,
and, as of January 1, 2005, is repealed, unless a later enacted
statute that is enacted before January 1, 2005, deletes or extends
the dates on which it becomes inoperative and is repealed.
  SEC. 5.  Section 50542.1 is added to the Health and Safety Code, to
read:
   50542.1.  (a) The Jobs-Housing Balance Improvement Account is
hereby created as a special fund in the State Treasury.  All money in
the fund shall be available, upon appropriation by the Legislature,
to the Department of Housing and Community Development for the
following purposes:
   (1) To make grants to local agencies pursuant to Section 50543.
   (2) To make grants to cities, counties, and cities and counties
pursuant to Section 50544.
   (3) For transfer to the Rental Housing Construction Fund pursuant
to Sections 50543 and 50545.
   (4) For the related administrative expenses of the department.
   (b) There shall be paid into the fund, the following moneys:
   (1) Any moneys that may be made available by the Legislature for
the purposes of the fund.
   (2) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
  SEC. 6.  Section 50543 is added to the Health and Safety Code, to
read:
   50543.  (a) Five million dollars ($5,000,000) of the funds
appropriated for purposes of this chapter in Item 2240-114-0001 of
Section 2.00 of the Budget Act of 2000 shall be transferred to the
Rental Housing Construction Fund created pursuant to Section 50740 to
be used pursuant to subdivisions (b) and (c).
   (b) The department shall provide state grants to local agencies to
assist them in attracting new business and jobs in "housing rich"
communities that lack an adequate employment base to match the amount
and cost of housing in those communities.
   (c) A local agency that has completed an economic development
strategic plan may apply for a grant to create an economic
development strike team to assist the local agency in better
targeting and coordinating outreach to employers who may choose to
locate jobs within the community.
   (d) In order to be eligible for a grant pursuant to this section,
a local agency shall have an adopted housing element that the
department has determined pursuant to Section 65585 of the Government
Code to be in substantial compliance with the requirements of
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code.
   (e) The department shall establish maximum grant amounts and
establish an appropriate process for evaluating need and making grant
awards.
   (f) No later than December 31, 2002, the department shall provide
an interim report to the Legislature indicating the progress of the
program established by this section, including the number of
jurisdictions accessing the program.  No later than December 31,
2005, the department shall provide a final report with updates to the
data contained in the interim report and a description of the
achievements by local agencies participating in the program.
  SEC. 7.  Section 50546 is added to the Health and Safety Code, to
read:
   50546.  (a) The administrative expenses of the department shall
not exceed 3 percent of the amount available for the purposes of this
chapter.
   (b) The department may administer the programs set forth in this
chapter pursuant to guidelines that shall not be subject to the
requirements of Chapter 3.5 (commencing with Section 11340) of
Division 3 of Title 2 of the Government Code.
  SEC. 8.  This act shall become operative only if AB 2864 is enacted
  and becomes effective on or before January 1, 2001, in which case
Sections 65891.3, 65891.5, and 65891.11 of the Government Code, and
Sections 50543 and 50546 of the Health and Safety Code, as added by
AB 2864, shall not become operative.
